We haven't made all the COAs ourselves, so in some of them you will have to create these accounts yourself.
The Retained Earnings shoulb be in the Equity Class (Liability Class) and the Year Profit/Loss Account should be the last one in the Expense Class.
By placing these accounts this way you will get a fine Balance Sheet/Profit and Loss Statement even for closed years./Joe
Hello Joe,
Please I'm having the error which came up because I changed the GL group of the Year Profit/Loss GL account to another GL group in the equity class, I removed it from the expenses group and created another GL Group with the name Profit & Loss.
What is the idea behind the Year Profit/Loss GL account grouped under the Administrative & General Expense GL group when you agreed that it should be under the Equity class but you wrote in bracket again liability (is the equity & liability not two different classes) ???
I changed the grouping of the Year Profit/Loss GL account under a new group called Profit & Loss under Equities class, but when I'm trying to assign the re-classified Year Profit/Loss GL in the "System and General GL Setup" window, I get the error
The Retained Earnings Account should be a Balance Account or the Profit and Loss Year Account should be an Expense Account (preferred the last one in the Expense Class).
My accountant wants the Profit & Loss and Retained earnings GL displayed under the "Owner's Equity" class in the reports...???
You mentioned that you have been able use it successfully, how did you configure the Profit & Loss to show properly under the Equity class in the reports with the Profit/Loss GL under the Expense Class.???